I use the droid to watch .iso converted to .mp4 feature films / guitar videos. Doing this with power charging.

Read it's important to drain the battery. Then remove battery for a short while to give battery microchip time to recalibrate. After doing this, recharge seemed faster. Charged up to 30% (had to go - couldn't charge more at the time). After talking on phone, back to 5%. Running GPA 15 installed clean with 0.3 LV 1.2 kernel. Amazing kernel!!

Read it's important to drain the battery. Then remove battery for a short while to give battery microchip time to recalibrate. After doing this, recharge seemed faster. Charged up to 30% (had to go - couldn't charge more at the time). After talking on phone, back to 5%. Running GPA 15 installed clean with 0.3 LV 1.2 kernel. Amazing kernel!!

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I've always found that when my battery would get a little out of whack (maybe every couple months) I would

Use the phone until the battery died.
Plug it into an AC charger and immediately delete battery stats.
Charge the phone up fully before using it.
Use the phone normally until the battery died.
Charge the phone completely before using it again.

After that the battery seems to report much more accurately and appears to receive a more complete charge, lasting much longer. That process is similar to what Motorola and most people on this forum say to do to properly calibrate the battery.

Another thing to remember is that even if the phone is plugged into a power source, you can still kill the battery by doing something intensive, (e.g., watching video, playing a game). Also, if the phone battery gets hot (over 140F I think) it'll stop charging altogether to protect the phone/battery from damage and this can also happen while gaming, watching video, running navigation...